How will this impact the UK economy overall?
It seems that Rachel Reeves has been listening. According to reports, Labour said it would rethink the rules that force carmakers to produce more electric vehicles after the industry warned that the current plan would lead to factory closures and job losses.
These rules were put in place as part of the wider Net Zero Goals to reach zero emissions. These mandates have not matched customer demand for electric vehicles, and without an urgent government intervention, both industry jobs and Britain's appeal as a manufacturing hub are under threat according to carmakers.
UK Chancellor Rachel Reeves, was keen to point out the importance of balance. The Labour government wants to have proper supports in place for the automotive sector, but they also need to achieve zero net goals and the zero-emission vehicles are part of this strategy. However, a quote directly from Rachel Reeves. "We want people to buy electric vehicles, but we want to keep jobs. We want to keep investment in Britain, and we're determined through the consultation to do just that."
It will be interesting to see how the car industry weathers this storm and how manufacturers deal with the uncertainty that this potential up-turn has created.
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